Record 36% 3Q earnings for Family Dollar

Jul 8, 2009

Family dollar today reported record earnings for its third quarter. WFAE's Simone Orendain reports: Family Dollar's net income was $88 million in the third quarter. That's up 36 percent from earnings of $65 million the year before. In a conference call with investors, Family Dollar CEO Howard Levine said the Matthews discount chain continues to prosper in the tough economy. He says, "In today's environment, there's a renewed focus on thriftiness and value among higher income consumers. But our core low-income customer has always understood the importance of value." Levine says there's been an emphasis on selling more necessities such as food and household supplies. He says another factor that gave the quarter a boost is 60 percent of its 6,600 stores now accept food stamps and credit or debit cards. Levine told investors the challenge now is for Family Dollar to keep the same customer base as the economy stabilizes.